Buchanan school district braces for cuts

School district awaiting decisions from state on per-pupil funding.

School district awaiting decisions from state on per-pupil funding.

February 01, 2007|YaSHEKIA SMALLS Tribune Staff Writer

BUCHANAN -- A Buchanan school district, already wading through tricky financial waters, could take another unwelcome gush from the state this year as Michigan combats its financial woes. As a result, the fiscal status of Buchanan Community Schools' at-risk preschool and summer school programs this calendar year is still in the dark, officials say. School leaders earlier this month anticipated losing between $60 and $100 per student in the wake of Michigan's recent annual revenue consensus forecasting conference. But the cuts could reach as high as $224 per student, "which, for the district, is a chunk of change," said Mark Nixon, principal of Moccasin Elementary School. The problem is the result of a state general fund shortfall of $345.5 million and a K-12 shortfall of $377 million. With 1,716 students counted in Buchanan as of December 2006, a $224-per-pupil cut could translate to $384,384 in cuts to Buchanan. "We're already struggling to keep up right now," Nixon said. The reduction would be just another abrasion mirroring the major blow dealt to the district last fall through cuts made to the Michigan School Readiness preschool program. Buchanan had anticipated receiving $232,200 from the state for its at-risk 4-year-olds last fall and filled more than 60 slots based on that amount. But the district later received notice of funding for less than half that number of children -- claiming only $85,800 in the fall -- because of increased demand for the program statewide. As a result, the district projected a 2006-2007 year-end deficit of $228,891, compared with an initial $5,879 deficit, because of the drop in state aid to the growing program. Superintendent Diana Davis this week said the district is still "about the same" in that projection. Right now, part of the district's fund equity -- a pot of unappropriated money available for budget shortfalls and unexpected expenses -- is being used to cover the preschool program, although it had not been used for the program in the past, Nixon said. The fund balance for 2006-2007 sits at around $2 million, which is a little bit under two months of operating expenses, Davis said. Meanwhile, the district is within the budget right now, she said, emphasizing that Buchanan has "enough money to pay for what our expenses are going to be for this year." In addition, Title I federal dollars and Michigan School Readiness Program state money is helping to sustain the four-days-a-week preschool program this year, Nixon said. But the amount of federal money has dropped steadily during the past few years, he said. Officials still expect to offer a summer school program this year, but more costs could be placed on parents, Nixon said. The program is funded through federal Title money and has been in place for about 20 years, Nixon said. As for other cuts or adjustments in Buchanan, administrators will not know for sure until the official amount per student at stake is announced, Davis said. "Until we know that there's going to be a cut," she said, "we're not going to come out with a list." Crunch time The amount allotted per student this year in Buchanan rests at $7,085 -- $10 more than what was budgeted for last year. But a per-pupil reduction could take place as early as this semester and into next school year, area officials say -- adding a sting to an already open wound. Buchanan already had to make about half a million dollars worth of cuts last year and is exploring privatizing transportation and custodial services to save more money -- a July 2005 move that will save the Berrien County Intermediate School District $1 million a year during the next five years, officials say. Buchanan officials are still working on requests for proposals seeking bids from private companies for services. The requests will likely be issued within the next month, Davis said. Last year, Buchanan eliminated six teaching positions worth $318,000; two in-school restriction rooms worth $50,000; the general fund's contribution to the at-risk, preschool and athletic programs; and a full-time custodian position worth $47,750. The district last June also approved a cut of $20,000 from its athletic budget for this school year and put off purchasing a $60,000 school bus. Michigan is looking at several options to resolve the budget issue, including replacing the Single Business Tax -- which expires at the end of 2007 and brought in nearly $1.9 billion a year -- as well as increasing income and sales taxes. Gov. Jennifer Granholm is expected to unveil her budget plan in early this month. The legislature and governor will have 30 days to act before the per-pupil cut becomes imminent. The governor's Michigan State of the State address is set for Tuesday, while Michigan Budget Director Bob Emerson presents the budget Feb. 8. Staff writer YaShekia Smalls: yassmalls@sbtinfo.com (269) 687-7001